MCA Youth secretary-general Saw Yee Fung said families who declared their income and fell under the B40 and M40 groups would be able to receive subsidies more effectively under the proposed system.

“This will help provide for their daily necessities,” she said.

The proposal was unveiled at a 2026 budget consultative roundtable with several representatives from Chinese youth-based organisations at Wisma MCA here.

MCA Youth also urged the government to include measures to tackle graduate underemployment, suggesting hiring incentives tied to high-skill roles, with tax breaks or subsidies for firms that place graduates in jobs matching their field of study.

It also proposed fully subsidised micro-credential and short TVET courses for IPTA and IPTS students, and mobile TVET units to reach rural and underserved areas.

On student welfare, the wing called for the abolition of the “zero balance” policy, allowing flexible PTPTN disbursements and a national student housing plan prioritising affordable hostels for B40 students

The “zero balance” policy requires university students to settle their fees in full before they are allowed to register for courses.

In a statement, MCA Youth said the proposals reflected the challenges facing young Malaysians, from the rising cost of living and graduate underemployment to uneven access to training and affordable housing.

It said the 2026 budget was a chance to address these gaps and place youth at the centre of national development, not just as beneficiaries but as contributors to Malaysia’s long-term growth.